Crypto User Loses $7M via Compromised Douyin Wallet

- User loses nearly $7 million from compromised Douyin wallet. - Private key compromised at creation, funds drained immediately. On June 16, 2025, Cointelegraph reported that a crypto user lost nearly $7 million after purchasing a compromised, discounted cold wallet via Douyin, China’s TikTok. According to the Cointelegraph report on June 16, malicious actors had compromised the wallet's private key at its creation, which consequently drained the user's funds within hours. Cointelegraph reported on June 16 that the victim purchased the cold wallet because sellers advertised it as "factory sealed" and discounted. However, the report, citing an investigation by blockchain security firm SlowMist, stated that someone had tampered with the wallet, compromising its security. Furthermore, SlowMist confirmed that scammers often modify such discounted and "factory sealed" wallets to deceive purchasers, emphasizing that the reduced price is a common luring tactic. On June 16, Hella, a former Bitmain team member, stated in a post on X (formerly Twitter) that the victim was a close friend, describing the wallet as a "carefully designed hot trap." Meanwhile, Cointelegraph reported on June 16 that criminals channeled the stolen cryptocurrency through Huiwang within a few hours. Huiwang, also known as the Huione Group, is a Cambodian conglomerate, which Cointelegraph noted is linked to various illicit activities. Cointelegraph reported on June 16 that SlowMist managed to track the stolen funds; however, the firm indicated little hope exists for their recovery. On June 16, SlowMist’s chief information security officer, posting on X (formerly Twitter) as 23pds, stated, "One should not gamble your entire fortune on a wallet that’s a few hundred bucks cheaper. It’s not saving money, it’s throwing your life away." The officer also noted, according to the Cointelegraph report on June 16, that preventing these scams can be challenging, primarily because third parties, who often handle shipments, may not be aware of the manipulation.